Fintech Regulation Coming Soon: OJK

The Financial Services Authority (OJK) is on the brink of issuing a new set of rules on Financial Technology (fintech), as additional and additional startups arise within the trade.

The OJK’s head of digital financial innovation and micro-finance development, Triyono, mentioned the set of regulations is presently awaiting approval from the Law and Human Rights Ministry. He also mentioned that the dissemination of information would be during the inauguration of a fintech center on August 16.

The new regulation would solely pertain to the kinds of fintech that are underneath the OJK’s oversight, and would embody peer-to-peer (P2P) loaning, insurance technology and equity crowd funding. Fintech like payment instruments are underneath the oversight of Bank Indonesia.

“Fintech is growing terribly fast; it’s not possible to create one regulation for every form of fintech. Therefore, to control fintech, we’ve written a regulatory umbrella as a way of consumer protection,” Triyono mentioned.

He also said that the vital problems within the regulation are enclosed to the duty of fintech firms in registering with the OJK as well as the obligation to safeguard consumers and sporadically give insight into their monetary reports.

According to information from the Indonesian Fintech Association (Aftech), there are presently 235 fintech firms joined within the association, a rise from one hundred sixty five firms in 2016.

Sixty-four P2P loaning firms are also registered with the OJK. As of June 2018, those sixty four firms have distributed Rp7 trillion (US$486 million) in funds year-to-date.